Minority caucus criticizes government’s response to U.S. Tariff on Ghanaian Exports
The Minority Caucus in Parliament has launched a sharp critique of the government’s lack of action following the United States’ imposition of a 10% tariff on Ghanaian exports, warning that the country risks being blindsided in an emerging trade conflict.
In a statement signed by Michael Okeyer Baafi, the Ranking Member on the Trade, Industry, and Tourism Committee, the Minority accused the current administration of having “no response” to the newly imposed tariff, calling out the government’s failure to adequately prioritize the African Continental Free Trade Area (AfCFTA).
The statement emphasized that the previous administration had laid out a strategy to shield Ghana from external trade shocks, but this was abandoned by the government under President Mahama. “We have not seen a clear policy direction on exports by the NDC government. The government has played down the importance of AfCFTA in its budget and neglected export-oriented strategies that had shown promise under the NPP,” the statement read.
The 10% tariff, introduced by former U.S. President Donald Trump, threatens to undermine Ghana’s gains under the African Growth and Opportunity Act (AGOA), which currently grants over 6,700 Ghanaian products duty-free access to the U.S. market. AGOA is set to expire in September 2025 unless renewed.
Sectors at immediate risk from the tariff include apparel, cocoa derivatives (such as powder and paste), and yam exports—key industries benefiting from AGOA. The Minority has warned that the tariff could lead to severe economic consequences, including potential job losses. “This is not just a trade concern—it is a potential employment crisis in the making,” the statement noted, highlighting that the apparel industry alone employs over 5,000 young Ghanaians.
The Minority also reiterated the importance of AfCFTA, which was designed to reduce Ghana’s reliance on unpredictable external markets. The NPP government had previously launched the National AfCFTA Policy Framework and Action Plan, which helped local manufacturers break into regional markets, supported by initiatives like the One District, One Factory (1D1F) program. However, the Minority argues that under the current administration, AfCFTA has received inadequate attention and funding.
“This government has no specialized programs to support exporters, no measures to diversify markets, and no diplomatic effort to mitigate the fallout from these tariffs,” the statement continued.
In light of these concerns, the Minority has called for urgent action from the government, including:
-
Immediate prioritization and funding of the AfCFTA Action Plan.
-
Diplomatic engagement with the U.S. to clarify the tariffs and negotiate potential exemptions.
-
Direct support for exporters through financing, training, and market intelligence.
-
A clear, coordinated national export policy to reduce future vulnerability.
The Minority’s call to action comes as concerns grow that Ghana’s failure to address these issues could have long-term consequences for the country’s competitiveness on the global stage and its trade diversification goals.
“This is the time for bold policy choices and urgent action—not silence,” the Minority concluded. “Ghana cannot afford to lose ground both in Washington and in Accra.”
Sources: myjoyonline.com
goldcoastnewsline@gmail.com
